Improving livestock value chains: The example of Vietnam (pigs)

Improving livestock value chains: The example of Vietnam (pigs)

Fred Unger, Lucy Lapar, Hung Nguyen-Viet and Delia Grace

Global Health Initiative 2015 Chiang Mai, Thailand, 11 February 2015

Research conference: Emerging diseases at convergence of animal, human and environmental health

Value chains

Value chains are the linked groups of people and processes by which a commodity is supplied to the final consumer. Value chain covers more than the production process; it implies also a flow of information and incentives between the people involved. Money is sent from the consumer to the different people in the chains. Understanding the flow of materials (pigs & pork) through a value chain is important in understanding how risk of disease spread may be produced in the chain, while understanding the flow and distribution of incentives is key to understanding how to manage those risks.

FAO, Animal Production & Helath,2012

Inputs & Services Production Processing Marketing Consumers

Past ILRI research has focused specific aspects

of given value chains, commodities and country.


...in Country A



...in Country D

...in Country C

...in Country B

Traditional approach was piecemeal

WHOLE value chain approach


Inputs & Services

Production Processing Marketing Poor

Consumers

From focus on production by poor livestock keepers …

To designing agri-food systems that improve access to nutritionally animal-source foods

Working in 9 target value chains under ILRI’s CRP 3.7. Livestock and Fish

Program time scope: 8-12 years

Pig Value Chain in Vietnam

Why pigs in Vietnam

Why pigs in Vietnam

Pork is a significant component of the Vietnamese diet

Strong demand for fresh pork that smallholders can supply through

most preferred outlets by consumers (temporary and permanent markets)

Dominance of smallholders in pig production, importance in

employment generation, significant contribution to HH income (accounts

for 14% of rural HH income)

Projections show that even with no growth from smallholders, large farms

will likely account for only 12% of the Vietnam pork market share

Smallholder pig systems can generate efficiency gains from low-cost

locally-sourced feeding options

Enabling policy environment: willingness of policymakers, development

partners, and stakeholders to engage in R4D initiatives

Relative shares of meat types in livestock production, Vietnam, 2002-2012

Source of Data: General Statistics Office 2013.

Pork is a significant component of the Vietnamese diet

Pork

Pig production holdings in Vietnam, by scale

Source: Kinh & Hai 2008.

Holding

type

Herd size % of

national

herd

(1999)

% of

national

herd

(2006)

Breed

Smallholders

or

backyard

1–10 pigs 80 64 North: mostly local

South: mostly cross

with exotic

Small-

medium

5–20 sows or 30–100

fattening

10 20 Cross and exotic

Medium 20–500 sows or 100–

4000 fattening

5 10 Exotic

Large >500 sows or >4000

fattening

5 6 Exotic

Dominance of small/medium scale,

significant contribution to HH income

Preferred market outlets for fresh pork by consumers

0%

20%

40%

60%

80%

100%

Hanoi HCMC Overall

Modern retail outlets Permanent open marketTraditional temporary outlet

Traditional market outlets remain the most preferred

purchase outlets for fresh pork by Vietnamese consumers

Pig Genetics

Reproduction issues:

• Small numbers of boars in existing AI facilities

• Quality issues of semen

• Limited accessibility to AI sources of pig producers

• Lack of pig farmers’ knowledge on AI

• Less educated AI technicians

• Institutions, agents involved Public (MARD, research Institutes, universities), private & NGOs

• Composition of pig herd by type and breed in Vietnam in 2010

Average ranking of major concerns

about meat safety by consumers HN HCMC All

Diseases of livestock 1.2 1.1 1.2

Hormone used in animals 2.8 3.0 2.9

Antibiotic use 3.0 2.9 3.0

Hygiene in market outlet (including

meat seller) 3.8 2.6 3.2

Hygiene in slaughtering 3.9 2.8 3.4

Concentrate feeding of animals 3.7 4.1 3.8

Other 3.5 3.1 3.2

Animal diseases tops the list of major concerns

of urban consumers about meat safety.

Demand for pork

• Strong preference for fresh, un-chilled pork;

Note, that imported pork is frozen pork, natural

protection from imports.

• Increased preference for lean pork

• Also increasing demand for local pork

(e.g. HCMC, potential for niche a product due to prime price)

• Future increases in consumer incomes are expected to

lead to increased demand for pork and other meat

products

Activities along the pig value chain in Vietnam

Pig sector review: background, trends, policies

Breed/Genetics: Scoping study and breed and genetic resources (central highlands)

Feed: Feed technology review

Food safety/animal health: On-going pig risk project (2012-2017): focus on animal and food safety

Indigenous pig system: Scoping study to evaluate the potential of integrated

indigenous pig systems (cross CRP)

Supporting activities: Participatory videoing: document interventions and their uptake

Lab diagnostic review: available tests, vaccines ect.

SD model: ex-ante used tool to evaluate effect of potential interventions

Reducing disease risks and improving food safety

in smallholder pig value chains in Vietnam

PIG RISK

Builds on previous projects in Vietnam

(e.g. Improving competitiveness of pig producers)

Improve the livelihoods of rural and urban poor in Vietnam through improved opportunities and incomes

from pig value chains as a result of reduced risks associated with pork-borne diseases.

Objectives

1. Assess impacts of pork-borne diseases on human and livestock and

identify critical points/opportunities for risk management (Year 1-2)

Producer, SH, market, traders, hospitals, consumers

2. Develop & test incentive-based innovations to improve management

of human & animal health risks in smallholder pig VC (Year 3-4)

Identify best bets validate apply evaluate/adjust re-apply scaling out

3. Communicate the lessons and tools learned to sustainably improve

capacity to assess and manage risks in the smallholder pig chain

Stakeholder consultations, round table, policy briefs

Work through partners: Universities, MARD, research institutions, NGO’s,

Various expertise: Vets, human health, environment, socio econ, social science

Assessment

Interventions (best bets)

Communication/ dissemination/ capacity building

Pig risk project sites

Assessment (Year 1-3)

– Literature review (animal Health and public health)

– PRA (producer, SH owner/worker, retailer, trader, consumer, input suppliers)

– Desk study, cost of illness (hospital cases)

– Basle lines (400 HH with pigs) in 2 provinces

– Longitudinal surveys:

• Farm/slaughter house and markets (12months/4 sampling rounds for biological samples) (microbiological risk assessment)

• HH with pigs (fortnightly visits for 1 year)

• Local vet stations (monthly reports)

• Consumer (monthly)

– Biological/chemical hazards (Salmonella, E-coli, Strep suis/ Difterex)

– Biological sampling on-farm (fecal, serum, oral fluid)

Problem/Constraints Ranking

Hung Yen Nghe An

Feed quality na* 1

High feed price na* 2

Low quality of veterinary drugs 3 3

Low pig price na* 4

Lack of capital 1 5

Lack of knowledge and skills in

animal health management

2 -

Lack of veterinary doctors/ para-vet 4 -

Disease 5 6

Ranking of pig production constraints, as perceived by farmers by region

Assessment: Results from RPA- Animal Health

*Farmers perceived that these constraints have never been addressed and cannot be solved by themselves. Therefore they consider these as given and did not rank them

Assessment: Results across different survey tools

Pig diseases, as perceived by farmers or from reviews

Literature review PRA BLS Longitudinal

survey

Serological

survey

FMD FMD FMD

PRRS PRRS PRRS PRRS on-going

CSF CSF CSF

Pastorellosis Pastorellosis Pastorellosis Pastorellosis

Paratyphoid suum

Edema disease Edema disease Edema disease Edema disease

Erysipelas

Porcine High Fever

Disease (PHFD)

Salmonellosis Salmonellosis Salmonellosis

Preliminary result: Animal health – farm management

23

Good animal husbandry practice deficits observed:

Rare use of disinfection matrasses

Farmers usually don’t wear protective clothing or boots

Visitors are often able to access the pig area

Risky practices when handling of sick and dead animals: e.g. selling or home consumption

Pig feed storage (e.g. signs of moisture)

Endo-parasitic prevalence indicates a problem:

2/3 of fecal samples are positive for at least one type of pig

parasite (e.g. Eimeria, Strongyloides, Trichocephalus suis, A. suum, Fasciolopsis buski)

(n) 15/Mar-15/Apr

2014 15/Jun-15/Jul

2014 15/Sep-15/Oct

2014 01/Dec-30/Dec

2014

4/Apr-23/Jun 16/Jul-4/Sep 2/Oct- 13/Nov 5/Dec- 15/Jan

Hu

ng

Yen

Van Giang C 1 23

69 (65)

69 (59)

69 (59)

69 C 2 23

C 3 23

Khoai Chau C 1 23

58 (45) 58 (56) 58 (58) 58 C 2 23 C 3 12

Tien Lu C 1 23

58 (50) 58 (49) 58 (44) 58 (33..) C 2 23 C 3 12

Ngh

e A

n

Dien Chau C 1 23

58 (49) 58 (51) 58 (50) 58 C 2 23 C 3 12

Hung Nguyen

C 1 23

58 (50) 58 (51) 58 (55) 58 (58) C 2 23

C 3 12

Do Luong

C 1 23

58 (51) 58 (57) 58 (50) 58 C 2 23 C 3 12

Total 359 (310) 359 (323) 359 (316) 359

Food safety sampling scheme (SH and market stools)

Biological hazards: Salmonella, E-coli, coliforms, Strep. suis

INTERVENTION - Best bets

Evidence driven based on assessment and available literature

Consideration for the selection process • Defining the targeted parameter

(e.g. reduced salmonella contamination, endoparasites, weight gain … )

• Is the expected effect measurable (more difficult for producer interventions or interventions along the entire chain)

• How we can monitor the implementation of the intervention

• Literature screening for potential interventions, including RA, successes and failures

• Projected investment costs for an intervention

• Expected compliance of actors & feasibility of intervention (pro & cons)

Best bets - Selection process cont.

• Is the expected effect focusing on a specific actor (e.g. producer) or

across-actor along the entire chain (e.g. reduced health risk of consumer)

• Externalities: policy environment

• LIFSAP GAHP experiences (29 criteria !), some unpractical e.g.

– Separate from residential areas

– Only same age classes

– Quarantine

Review & reduce to 5-10 most feasible based on producer feedback

• Potential for scaling out

Validation of selected best bets

• SD model : ex-ante assessment of effects of bets bet

• Wide stakeholder consultations, including government

• Feedback of targeted actors

Actors/Stakeholders

PIG SLAUGHTER-

HOUSE

PORK MARKETS

HOUSEHOLDS

PIG FARMS HH WITH PIGS

DRUG SUPPLIER

WORKERS LOCAL VET

TRADER/BUTCHER

UNIONS/GROUPS

TRADER/RETAILER

MARKET MANAGER

CONSUMERS

SLAUGHTERHOUSE OWNER

LOCAL VET

FEED/BREED SUPPLIER

LOCAL VET

HEALTH/TRADE SECTOR

HEALTH SECTOR

LOCAL VET

Addresses Bets

Disease Risks and Food Safety

4. SH hygiene practice + C&D

2. Biosecurity 3. Waste and farm management

1. I

nfo

rmat

ion

– K

no

wle

dge

tar

geti

ng

be

hav

ior

chan

ge

5. Shop hygiene practice + C&D

6. HH: handling, preparation, habits

PIG FARMS

Source: Sinh & Unger, 2014

PIG SLAUGHTER-HOUSE


PORK MARKETS

Consumer preference for “dry - looking” pork (Sinh, 2013)


Outlook 2015-2018 …

Pig risk:

Best bet implementation and evaluation

Dissemination & communication

General VC activities (based on recent stakeholder consultations):

Feed Capacity building on feeding of different breeds & types

Evaluation of non-traditional feeds e.g. by-products of agro-industries

Breed Review of breeding and breeding management

Improving of quality of breeding boars and AI services

Conversation of local breed

Explore options for a traceability system

. . .

CGIAR is a global partnership that unites organizations engaged in research for a food secure future. The CGIAR Research Program on Livestock and Fish aims to increase the productivity of small-scale livestock and fish systems in sustainable ways, making meat, milk and fish more available and affordable across the developing world.

CGIAR Research Program on Livestock and Fish

livestockfish.cgiar.org

Acknowledgement: Vietnam University of Agriculture, Faculty of Vet Med Vietnam University of Agriculture, Faculty of Economics Hanoi School of Public Health

http://livestockfish.cgiar.org/

Science

Improving livestock value chains: The example of Vietnam (pigs)